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All About StartupsFri, 02 Nov 2018 10:51:18 +0000en-UShourly1https://wordpress.org/?v=4.2.22A Revolution in Work Freedom – Becoming a Digital Nomadhttp://startuphook.com/employment-2/a-revolution-in-work-freedom-becoming-a-digital-nomad/1483/
http://startuphook.com/employment-2/a-revolution-in-work-freedom-becoming-a-digital-nomad/1483/#commentsWed, 16 Sep 2015 17:00:39 +0000http://startuphook.com/?p=1483A Revolution in Work Freedom – becoming a digital nomad: Interview with Jacob Laukaitis Digital Nomadism is the new lifestyle with an adventurous attitude to the way of working, empowered by technology to eliminate our bondage to the physical workspace....

A Revolution in Work Freedom – becoming a digital nomad: Interview with Jacob Laukaitis

Digital Nomadism is the new lifestyle with an adventurous attitude to the way of working, empowered by technology to eliminate our bondage to the physical workspace. This trend is rising and roughly 2/3 of those who make such change became freelancers while the rest create a virtual business or team. (Upwork)

The digital nomad Jacob Laukaitis, a member of Talent Garden is sharing his story of turning the worklife life upside down and running a fast-growing online business while traveling to more than a dozen countries a year.

Digital entrepreneur and nomad, passionate writer and adventurer. Making money while travelling – how? Tell us more about yourself: where, when and how it all started?

I established my first company at the age of 15 and have been running my own online ventures ever since. I became an active digital nomad about 2 years ago when I started a small, but very profitable social media marketing agency. Eventually I worked 3-5 hours a week and could travel anywhere, so I went to 12 countries that year. I’m currently a co-founder of an online coupons company ChameleonJohn.com. Even though this is a much bigger project, I’m still completely location independent, since I can complete all of my work tasks online.

What do you call your home and what do you name as office?

My perception of what is ‘a home’ has changed dramatically in the past 2 years. Right now home is nowhere and everywhere at the same time. Which, in my opinion, is awesome. Speaking of an office, it’s any table in the world as long as I have my computer and a Wi-Fi connection. I’m also a frequent user of co-working spaces. Currently, I am a member of the Talent Garden(TAG) network, which is very convenient for the travellers in Europe, especially the South, as with one membership you work from all of the campuses. Coworking is the best office, because I can meet so many interesting entrepreneurs, professionals and digital nomads. Hopefully, TAGwill locate some campuses around Asia soon as it would make working travellers life easier there.

Any tips for those who are about to start their journey?

Of course! For every starting digital nomad, I’d recommend: never settle for too long, keep on moving and exploring cultures (if you have the time, start learning languages); always finish your work tasks before going diving, surfing, hiking or doing all the other super exciting stuff; whenever traveling, try to get hosted – that’s the best way to meet new friends and explore the place’s culture. For everyone who would like to become a digital nomad, I’ve just created a free newsletter

In the past 2 years I’ve traveled to more than 30 countries, helped grow ChameleonJohn from a startup to an established company and some of my digital nomad articles got super popular, such as “Why I Will Never Live 9 to 5″ on Medium with 160,000+ views.

A little bit more on travelling and adventures: can you share any personal travelling stats and the biggest / craziest adventures you had?

I currently spend most of my time in Asia, since I’m really interested in the continent’s history, numerous cultures and online business opportunities. I’ve been to 11 thus far, some of them many times. I’ve spent a month traveling all around Japan; got my scuba diver’s license in the Gili Islands; trekked volcanoes in Bali; explored hundreds of temples in Myanmar and Cambodia; snorkeled with whale sharks in the Philippines; and motorbiked across dozens of islands, towns and cities.

I’ve also just finished motorbiking across the Balkan states. I drove 8,000 kilometers across 15 countries in just 4 weeks, completely alone.

Tell us more about your plans. Do you make any? What are the next destination points?

I don’t usually make fixed plans, but I have quite a few ideas where I want to go and what I want to do. Starting from the 1st of September I’ll spend a week relaxing in Thailand, a month having an awesome team get-away with my colleagues in Bali, a month traveling around Indonesia and learning their official language, two months traveling around India (which includes 1-2 weeks living in the slums of Mumbai), three months in Taiwan learning Mandarin and connecting with the local startup community and three month-long trip around China, among a few other potential destinations.

]]>http://startuphook.com/employment-2/a-revolution-in-work-freedom-becoming-a-digital-nomad/1483/feed/0Why is Mark Zuckerberg Investing in Colombia’s Startup Scene?http://startuphook.com/tech/why-is-mark-zuckerberg-investing-in-colombias-startup-scene/1455/
http://startuphook.com/tech/why-is-mark-zuckerberg-investing-in-colombias-startup-scene/1455/#commentsSat, 27 Jun 2015 13:20:54 +0000http://startuphook.com/?p=1455(Article by Capitalist Exploits) Dale Carnegie was a brilliant man. An intellectual giant with insights most of us will only dream of possessing. I read much of his works when in my twenties. His books are relatively small and I’d...

Dale Carnegie was a brilliant man. An intellectual giant with insights most of us will only dream of possessing. I read much of his works when in my twenties. His books are relatively small and I’d keep one in my coat pocket. When riding the train into London Bridge for work, it would often act as my refuge from my surrounding cattle-like conditions.

These were all too often worsened as, when only 10 minutes out of the station, some heartbroken office dweller would decide that another dreadful day in his cubicle was more than he could take and would leap in front of the train, thereby ensuring a lengthy reading time for me.

While in the midst of doing a bit of research on Latin America’s start-up scene for me, a colleague, when not finding the information needed, picked up Carnegie’s book for a few minutes relating the following passage to me:

I often went fishing up in Maine during the summer. Personally I am very fond of strawberries and cream, but I have found that for some strange reason, fish prefer worms. So when I went fishing, I didn’t think about what I wanted.

I thought about what they wanted. I didn’t bait the hook with strawberries and cream. Rather, I dangled a worm or grasshopper in front of the fish and said: ‘Wouldn’t you like to have that?’

South American countries are engaged in increasing competition to lure some of the most promising start-ups to their shores. Chile and Uruguay have government-run programs that offer US$40,000 in free money to persuade entrepreneurs to move for a period of at least six months. While the programs are aimed at luring top entrepreneurs from outside their borders, the programs do a poor job in keeping entrepreneurs in their countries long-term.

“After completing the 6 month program, nearly 80 percent of entrepreneurs left Chile, 34 percent of them for the United States, according to a recent survey shared with us.”

If you’re thinking about setting up some sort of dummy company and living large in Latin America for a few months I haven’t yet come across anyone that has beat you to it. Although, to be accepted into Chile’s program you have to prove that you’re doing, well… something.

Both Chile’s and Uruguay’s programs are in the nascent stages and only several years old but giving free money to promising entrepreneurs clearly hasn’t provided the dividends desired.

It is rapidly turning itself into an attractive market by incentivizing hard science and IT-related education. As Mr Carnegie would say, a fish pond…

The Digital Talent initiative is churning out thousands of Colombians with post-graduate degrees in computer science and engineering programs. This is already achieving results and according to the government, between 2007 and 2012 the revenue of the IT sector in Colombia grew by 177%, reaching US$6.8 billion. Developing from the ground up or domestically, I believe, will go a long way to building a sustainable domestic economy.

Medellin is a city with a dark history but you wouldn’t know it. It is rapidly becoming a go-to destination for tourists, entrepreneurs and business people alike. The city is at the forefront of efforts to create an IT hub. Students can sign up for free after-school computer programming lessons and the city is working towards being a true English/Spanish bilingual community through the certification of 1,500 teachers to teach English in a $23 million program. At the center of the city is a remarkable organization –Ruta N.

Ruta N, who will be joining us shortly at our Seraph Meet Up, aims to be the biggest innovation cluster in Latin America and supports innovation related education and offices for companies ranging in size from multinationals to those participating in its accelerator (more about it here). Other privately run start-up accelerators are moving into the city and capturing the attention of Silicon Valley. espacio.co opened its doors in 2012 and has ties to the Founder Institute.

At the infrastructural level, the Colombian government has been making concerted efforts to build adequate market size. It’s spending billions of dollars expanding high speed broadband access to more and more Colombian communities. Colombia is also the place where Mark Zuckerberg launched internet.org earlier in the year. Soon, any individual with a cellphone in Colombia will be able to access the internet even without paying for data.

Where Colombia does invest in start-ups, it does so perhaps less haphazardly than Chile and Uruguay. And all funded start-ups are run by Colombians. Here’s The Atlantic on the topic:

iNNpulsa, housed under the Ministry of Commerce, Industry, and Tourism, works much like a bank, issuing government-funded grants to promising entrepreneurs in everything from health care to food production.

However, the more tech-focused initiative, apps.co, focuses on partnering with universities and private companies to provide seed funding, training, and mentorship to aspiring entrepreneurs. Working almost exclusively with entrepreneurs who want to build web-based applications, apps.co will give $33 million dollars to partnering accelerators and university-based entrepreneurship programs from 2012-2014.

According to Information Technologies and Communications Minister Diego Molano Vega, most of that money comes from taxes on foreign exports like oil and coal; about ten percent of that revenue is directed toward “innovation projects”.

Colombia doesn’t have the market size of Brazil, Latin America’s tech powerhouse that dominates news week to week, but ever so quietly Colombia is building the infrastructure for a really robust tech ecosystem. This is a country which in a decade is going to be completely different, and likely valued accordingly.

Colombia’s efforts to building this ecosystem caught our eye because the country has committed itself to a long term strategic vision and appears to be keeping to it. Instead of gimmicky handouts to the most promising foreign entrepreneurs, they are spending to ensure that individuals are equipped with the right skills and education, and that the marketplace is ready for them. Just recently, Medellin promised to spend a further $389 million towards “Medillinovation”.

]]>http://startuphook.com/tech/why-is-mark-zuckerberg-investing-in-colombias-startup-scene/1455/feed/1Most Promising Startup Cities in Emerging Marketshttp://startuphook.com/venturecap/most-promising-startup-cities-in-emerging-markets/1448/
http://startuphook.com/venturecap/most-promising-startup-cities-in-emerging-markets/1448/#commentsWed, 24 Jun 2015 13:46:34 +0000http://startuphook.com/?p=1448(Article by Lamudi) Berlin has risen to become one of the new startup capitals of the world, and is a fierce competitor of Silicon Valley or London. However, the success of new startups in emerging markets such as OkHi, Krowdpop...

Berlin has risen to become one of the new startup capitals of the world, and is a fierce competitor of Silicon Valley or London. However, the success of new startups in emerging markets such as OkHi, Krowdpop or Feesheh may be a sign that countries in Asia, Africa and Latin America are catching up and now host more startups than ever before.

According to World Bank data, there are now more than 90 tech hubs across Africa. Regions such as South East Asia have also caught the eye of both investors and intrepid entrepreneurs. The following five most promising tech cities in emerging markets have all the right ingredients to become future startup capitals. It may only be a few years before we see the next entrepreneurial hub emerge from Asia, Africa or Latin America.

Medellin, Colombia

Medellin – Colombia’s cultural capital city – was named 2012’s innovative city of the year by the Wall Street Journal Magazine and Citibank. The appearance of Colombia’s second biggest city has changed dramatically during the past 20 years. Public libraries, parks, schools and museums – as well as a series of transportation links from the suburbs to the center – have been built. The Grupo Empresarial Antioqueño, an accumulation of Medellin-based companies, now generates seven percent of Colombia’s gross domestic product. Leaders such as Diego Angel, creator of Angel Studios and a role model in the Medellin startup scene, help young entrepreneurs to found startups in order to support the city’s fast-growing tech scene.

Amman, Jordan

Across the Middle East, entrepreneurship is on the rise. Amman, the capital city of Jordan, is the leading startup hub in the region. Trying to fill its natural resources gap with human capital, the government has invested in infrastructure, education and also reformed regulations, meaning Jordan is now one of the easiest and cheapest regions to register a business. The outcome is the best Internet connectivity in the Middle East, as well as good universities producing many young, skilled entrepreneurs. Women in the workplace is still a controversial topic in the Middle East. Although over half of the region’s university graduates are women, only one fifth can find a job in the market. One key benefit of online startups is the opportunities they create for women at work. One of the most successful startups in Amman is Zaytouneh (“olive” in Arabic). It was founded by Fida Taher and offers videos on how to cook by only showing the ingredients and the hands of the cook.

Lahore, Pakistan

Since 2012 there has been a massive shift in the Pakistani startup scene. Lahore, Karachi, and Islamabad – the three major cities – have become home for many new startups in Pakistan. Lahore, the second largest city, is especially interesting because of its urban development, adding industrial areas, new university campus and airport to the cityscape. The strong infrastructure has helped to create a dynamic market for startups, with many incubators launching fascinating business ideas. With the young population of the country – two thirds is under 30 – as well as strong support from the government, Lahore has potential to be one of the most innovative startup hubs in the world. Big companies such of Microsoft already have their eye on the country, with the tech giant hosting a Windows phone hackathon in Lahore in 2013.

Jakarta, Indonesia

The largest city of Indonesia, Jakarta is also known as one of the biggest megacities in the world. One skyscraper after the other keeps rising into the sky of Jakarta, showing the massive demand for space. The country’s growing middle class keeps flocking into the city, bringing with them a strong purchasing power, high penetration of mobile phones and an enormous demand for online service – presenting plenty of opportunities for new business ideas. The outcome is a strong market for tech startups to explore. Although there is no government funded support, more and more Indonesian investors including Merah Putih Incubator, GDP Venture, East Ventures and GREE Ventures are entering the market. Solving the upcoming challenges caused by the city’s fast growth means startups have to be practical, because they need to pay off since day one. For this reason, Jakarta is home to a number of startups focusing on travel, e-commerce and lifestyle, including property portal Lamudi, which launched locally in late 2013.

Lagos, Nigeria

Nigeria has now taken the lead as the largest economy on the continent. Lagos, the most populous city with over 20 million people, illustrates the country’s strong economic development. It is the second fastest growing city in Africa and the seventh in the world. One reason for its success over the past decades is the fast growing tech startup scene, especially in Yaba, a suburb in the port of Lagos. Residents have nicknamed the area Yabacon Valley because of its likeness to Silicon Valley. In Yabacon Valley you can find the financial and banking center of Nigeria, several education institutions as well as a cluster of technology startups. A unique place for high-tech innovation and development, buoyed by the country’s growth, the middle-class affinity towards technology and massive online population of 45 million Internet users. No wonder coworking spaces and events pop-up in Lagos attracting many angel investors, venture capitalists and entrepreneurs.

Launched in 2013, Lamudi is a global property portal focusing exclusively on emerging markets. The fast-growing platform is currently available in 28 countries in Asia, the Middle East, Africa and Latin America, with more than 500,000 real estate listings across its global network. The leading real estate marketplace offers sellers, buyers, landlords and renters a secure and easy-to-use platform to find or list properties online.

]]>http://startuphook.com/venturecap/most-promising-startup-cities-in-emerging-markets/1448/feed/08 Tips For Startups Looking To Importhttp://startuphook.com/employment-2/8-tips-for-startups-looking-to-import/1413/
http://startuphook.com/employment-2/8-tips-for-startups-looking-to-import/1413/#commentsWed, 27 May 2015 09:38:50 +0000http://startuphook.com/?p=1413(Article by James Sinclair) Once startups look to their next big order or customer, it is desirable to import goods or services to reduce costs, add value, increase efficiency and reduce supply chain risks by diversifying. Many UK businesses find...

Once startups look to their next big order or customer, it is desirable to import goods or services to reduce costs, add value, increase efficiency and reduce supply chain risks by diversifying. Many UK businesses find this an attractive proposition, yet are often faced with challenges when importing. At Trade Finance Global, we’ve put together 8 top tips for you to be one of the thousands of UK businesses who collectively import over $650bn per year.

Get The Basics Right: Write an Action Plan

Importing needs planning. Writing down clear objectives with timescales, costs and KPIs can help turn an idea into a well-developed strategy and plan of action.

Speak To a Business Finance Broker

Business owners are often time-stretched, and getting access to business funding can be arduous and time consuming. Not only can a business finance broker save time and efficiency, but also money, given that there are often none or very little up-front fees and because they understand the commercial finance sector and will understand your business needs well.

Do Your Due Diligence On Your Suppliers

Researching a market and your supplier is imperative if you are thinking of trading overseas. Checking information on suppliers such as business registrations, public documents and standard trade accreditations will help you understand the situation of the supplier and reduce risks of non-shipment.

Learn and Negotiate The Correct Payment Terms

Negotiating payment terms to mutually benefit the importer and the export is crucial in ensuring a successful trade transaction. You should determine when you (or a trade finance lender) should pay the supplier for the goods: before shipment, proceeding shipment, or perhaps once it has reached a warehouse.

Watch Out and Understand The Risks

There are several risks that business owners can find themselves in if they haven’t planned trading effectively.

Even the smallest volatilities in the foreign exchange market can have huge implications on the price your business ends up paying for goods. Currency risk policies are important to plan for and consider when developing strategies for importing goods. Read our guide on managing currency exposures.

Sort Out The Transport and Shipping

Shipping goods around the world is often seen as an arduous task. But the right amount of planning, advice from freight forwarders (see the UKTI guide), can iron out the bumps in an import transaction.

In summary, any products that are being shipped require a Bill of Lading or a Sea Waybill which outline information about the shipment and contracts of carrying the goods. You can read our guide on how shipping works when importing or exporting goods on Open to Export.

Check The Rules on Import and Export Duties

Some goods may need licenses to import into the UK. The rules are listed on the BIS website. Furthermore, there is legislation which prevents the import of certain goods if they don’t meet EU Health and Safety requirements or need a specific import license. The EU also has certain trade agreements which mean that certain payments for importing goods are eligible if they come from a certain location.

Don’t Give Up!

Once you have done your sums, you may find that your idea could be profitable. However this is just the site. Often financing such trade requires time and patience, as well as many decision makers, advisors, financiers and stakeholders both internally and externally.

James Sinclair is an associate at Trade Finance Global. He can be found on Twitter @TradeFinGlobal

]]>http://startuphook.com/employment-2/8-tips-for-startups-looking-to-import/1413/feed/0The Adoption of Social Business Toolshttp://startuphook.com/social-2/the-adoption-of-social-business-tools/1408/
http://startuphook.com/social-2/the-adoption-of-social-business-tools/1408/#commentsTue, 26 May 2015 08:06:08 +0000http://startuphook.com/?p=1408(Article by Hassib Nasseri) The dynamics of the way we socialise and communicate has shifted. Businesses are starting to realise the tangible benefits that can be gained; as a result, the growth in the adoption of social media across all...

The dynamics of the way we socialise and communicate has shifted. Businesses are starting to realise the tangible benefits that can be gained; as a result, the growth in the adoption of social media across all industries has been exponential and we are witnessing the creation of social businesses.

Social business is defined as:

“The creation of an organisation that is optimised to benefit its entire ecosystem (customers, employees, owners, and partners) by embedding collaboration, information sharing and active engagement in its operation and culture. The result is a more responsive, adaptable, effective and ultimately more successful company.”

The adoption of social business tools is seldom a choice for large organisations today. Businesses are increasingly using internal social tools developed by pioneering companies like IBM, Microsoft and Salesforce to raise workforce innovation, productivity and efficiency, by encouraging collaboration and cooperation amongst them. By 2011, 72 percent of the companies surveyed reported using social technologies in their business and over 90 percent of those users reported they are seeing benefits.

Benefits of Internal Social Tools

Discovering subject matter experts and new talents

Internal social tools give employees of all levels a voice. It gives them an opportunity to shine and raise their internal eminence amongst other peers. Its a great way to discover SMEs within a large organisation and identify new talents.

Connecting employees worldwide

IBM is a great example. Its one of the largest organisations in the world with over 430,000 employees worldwide. They use ‘IBM Connections’, which is the leading social network platform in the market to connect everyone of IBM’s employees to each other worldwide.

Improving employee engagement

Employees would start to get to know others in the organisation with whom they might not work directly, especially if the are based overseas.

The biggest benefit in this case would be to drive and create a culture of cooperation and collaboration. Millennials will expect to be able to collaborate at work the way they have learned to connect through their personal lives and on these external social platforms.

Creating a culture of mutual respect

Given the right level of encouragement, employees will start to participate, without regard for rank, function, location, or tenure. It removes the corporate hierarchy and creates a more flat organisational structure. This would not be possible without these internal social platforms. The most common form of interaction tends to be praise and appreciation, which only motivates and drives the leaders within an organisation forward.

Improving communication with the leadership

Enterprise social networks enable high-level executives to comment directly into the activity stream and engage every employee at once. It gives employees an opportunity to interact in a friendly, non-intimidating way with the C-suite, and the executive level to show they are approachable.

Boosting productivity and efficiency

One of the best outcomes that result from the implementation of these social tools is the enhancement of productivity and efficiency. In a large organisation with thousands of employees. It becomes relatively easier and less time consuming to find the the right individual with the right skills and areas of expertise. Through the use of communities and focus groups, it becomes incredibly simple and easy to communicate and collaborate with a large number of people which saves time, money and effort.

There is a strong focus amongst these big players to take a step closer and start to develop tools to enable organisations to engage and collaborate with clients on these social tools. Its an area worth keeping an eye on.

Hassib Nasseri is a Social Media and Brand Strategist. He can be found on Twitter @BusinessFlair

]]>http://startuphook.com/social-2/the-adoption-of-social-business-tools/1408/feed/0Time for Digital Financial Innovationhttp://startuphook.com/e-commerce/time-for-digital-financial-innovation/1405/
http://startuphook.com/e-commerce/time-for-digital-financial-innovation/1405/#commentsSun, 24 May 2015 13:59:57 +0000http://startuphook.com/?p=1405(Article by Vivianne Arnold) The advent of the Internet has often been compared to invention of the printing press in the late 15th century. Like the Internet, the printing of books made information ubiquitous and readily accessible, empowering people with knowledge...

The advent of the Internet has often been compared to invention of the printing press in the late 15th century. Like the Internet, the printing of books made information ubiquitous and readily accessible, empowering people with knowledge they used to change and expand their world.

Vivianne Arnold

What is often forgotten in this analogy is that the revolution triggered by the printing press was ongoing; it wasn’t over and done with inside a few years or even decades. It had a transformational impact on human history which lasted centuries.

So it is with the Internet. The message is that the revolution is not over yet. Many industries are still dealing with its far-reaching implications and will never be the same again.

Much has been written about the supposed demise of the print media, and how that has changed journalism. Convergence in media has destroyed the barrier between print and electronic media, and pitted old style newspaper publishers against public broadcasters and new arrivals like Huffington, personal blogs and even Facebook.

The financial industry may have taken longer to feel the impact of the online revolution, but that doesn’t mean it is going to escape. In fact, right now it is the turn of the established financial industry to really feel the blowtorch of change.

Up until now, banks have largely used the Internet as a different channel for their business. It’s been a useful tool to them as they sought to extend the dominance of their franchises. So they’ve moved into Internet banking, mobile banking, and got themselves onto Facebook and Twitter.

What is happening now is that a new wave of operators has emerged, almost from nowhere, to challenge the banks and offer the same services more efficiently, and in some cases offer entirely new services. In 2015, telecommunications companies, cloud services providers and a whole new generation of agile and nimble start-ups in what we call the fintech sector are muscling in on an area the banks have had to themselves for centuries.

Did you ever think that Apple would be a financial services company? With the arrival of Apple Pay, they might just be on the verge of inventing a new world currency. It is an extremely fluid situation and the outcome of the revolution won’t be known for some time. Banks will either buy up the start-ups, make alliances with them or they’ll lose business to them as they get cut out of the loops.

The revolution is not just a developed world phenomena either. In fact, countries with millions of “unbanked people” – such as Indonesia – have an incredible opportunity to leapfrog generations of technology and move straight to the future. In Kenya, the mobile phone is the bank account of the future for millions of Kenyans who currently don’t have bank accounts and use mobile service M-Pesa instead.

The good news is that this is a new world of opportunity for digital innovators in financial services. This is an international opportunity, built on new technologies which make the transfer of funds across borders instantaneous and cheap.

In the Asia-Pacific, digital financial innovation has a big role to play in fostering the growth of trade. It can be a significant creator of wealth. Regulators need to get on board with this, and be facilitators of change rather than protectors of the status quo.

Ultimately, the message is that technology is first making the world smaller, to help make it grow bigger. Like all revolutions, there are going to be winners and losers, and those who are fearful of change. But, like the printing press, this is an inevitable revolution which won’t go away. So get on board now, get innovating, and make it work for you.

Vivianne Arnold is CEO and co-founder of Franklin Phillips, an executive search and consulting firm specialising in technology, fintech, trade finance, payments, digital and transactional banking. Franklin Phillips is a global firm with a focus on Asia, Australia and the Middle East. She will be chairing the upcoming Collaboration in Fintech Conferencetaking place in Sydney in June.

Don’t Forget to register for ‘Collaboration in Fintech with Startup Hook special code: CC*SH

]]>http://startuphook.com/e-commerce/time-for-digital-financial-innovation/1405/feed/0Fintech Ecosystem: Innovation, Disruption and Collaborationhttp://startuphook.com/e-commerce/fintech-ecosystem-innovation-disruption-and-collaboration/1398/
http://startuphook.com/e-commerce/fintech-ecosystem-innovation-disruption-and-collaboration/1398/#commentsFri, 22 May 2015 09:56:42 +0000http://startuphook.com/?p=1398(Article by Vijaya Thyil) Technological innovations focusing on the financial industry has led to a rapidly growing new ecosystem called Fintech. A biological ecosystem generally comprises of organisms portraying continuously evolving relationships in a specific climate, leading to complex, non-linear...

Technological innovations focusing on the financial industry has led to a rapidly growing new ecosystem called Fintech. A biological ecosystem generally comprises of organisms portraying continuously evolving relationships in a specific climate, leading to complex, non-linear structures. This is exactly what we are seeing with the Fintech entities. The economic climate is just right! The breakdown of trust due to the recent financial crisis has meant that society perceives a brick-and- mortar financial institution no different to a cloud entity!

Vijaya Thyil

Simultaneously, the extensive use of smartphones and web 3.0, the uncontrollable rise of consumer debt levels and the massive increase of international financial flows have made the conditions ripe for Fintechs to thrive. However, due to the recentness of this ecosystem, the timescale of the entities is in its embryonic stage. That is, how quickly is a Fintech born; when and how does it die; how does it exit, say, through an IPO or acquisition; nested versus non-nested structures; the social impact of Fintechs and so on are continuing to be recognized as they occur.

We keep hearing the term ‘disruption’. Why?

At first glance, the emerging scenario appears quite simple: Fintech companies, mainly young, entrepreneurial start-ups, producing innovative digital technologies to improve the customer experience, efficiency and range of the financial services such as lending, payments, retail and institutional investments, equity financing, and remittances. Entrepreneurship, financial development and digitisation are not new, right? Why then are we referring to a ‘disruption’? Well, the rapid speed at which the innovations are being created, commercialized and embraced by the society, globally, means that traditional business models of financial services are collapsing or being swiftly dismantled and recreated. One would expect the time period to be disruptive and ground breaking.

How would you describe the collaborators?

While the convergence of entrepreneurship, financial services and digitisation necessarily means the involvement and collaboration of multiple entities, the synergy created by the Fintech ecosystem is much larger due to the fundamental, intrinsic and pervasive influence of both financial services and digital technology in our day-to-day lives. So we are seeing start-ups, seasoned entrepreneurs, local and foreign investors, venture capitalists, financial institutions, insurers, wealth managers, governments, telecom providers, retailers, corporations, consumers, educational institutions, and, specialist consultants which then gets networked into hubs, accelerators, incubators and so on. The birth of new entities in the ecosystem occurs from both serendipity as well as planned innovations. The collaborations are customized, pro-active and dynamic.

For instance, banks are working with start-ups to ensure that the innovations produced match their needs, and investors and VCs are willing to direct huge capital towards these start-ups because of the high returns. Furthermore, financial institutions are also starting to provide greater funding for the Fintech companies to get access to new products in a shorter timeframe. Governments are very supportive of Fintech due to the increase in jobs, skilled workforce and inflow of capital, and are trying to provide attractive environments for Fintech companies to thrive in.

In particular, how is the academia –Fintech collaboration occurring?

The academia’s collaboration with the Fintech ecosystem is occurring through several streams. The Entrepreneurship, Finance and banking, IT and Communications disciplines are supplying the founders of Fintech startups. Universities and centres are providing mentoring programs and boot camps, sponsoring student-led Fintech clubs and allowing the use of their campus spaces for Fintech meets and events. Academic research is evolving around data analytics, cybercrime and fraud protection, network analysis and Fintech business models with new academic and practitioner journals being founded for disseminating the research. Technology companies in turn are partnering with Universities by setting up Chairs focused on expertise in finance, digital technologies and entrepreneurship to facilitate the rapid and smooth knowledge transfer and commercialization of academic research.

Dr Thyil is a member of the CFA Institute and CFA Society of Melbourne, and a Fellow of FINSIA. Her research expertise is in financial intermediation and business model innovation and she is one of the academics leading the research on Fintech.

]]>http://startuphook.com/e-commerce/fintech-ecosystem-innovation-disruption-and-collaboration/1398/feed/0The Art of The Fair Equity Splithttp://startuphook.com/employment-2/the-art-of-the-fair-equity-split/1395/
http://startuphook.com/employment-2/the-art-of-the-fair-equity-split/1395/#commentsWed, 20 May 2015 08:35:35 +0000http://startuphook.com/?p=1395(Article by Mike Moyer) Most founders struggle with trying to determine the right amount of equity for early employees, investors and partners. They want to provide enough equity to be motivating, but they also want to keep plenty for themselves....

Most founders struggle with trying to determine the right amount of equity for early employees, investors and partners. They want to provide enough equity to be motivating, but they also want to keep plenty for themselves. Concrete answers to the question, “how much equity should I give?” are often predicated by the dreaded, “it depends.” What follows is vague advice, rules of thumb, complicated valuation models. Mostly, it boils down to negotiation skills and straight up guessing.

To make matters worse, most people use “fixed” equity models. This means that chunks of equity are doled out to people in advance of any work being done. This leads to conflict when individuals deliver something different than they promised. If they under deliver founders wish they gave less, if they over deliver employees wish they had more. Fearing this, founders layer on vesting schedules and buyback provisions in hopes of mitigating the damage caused by incorrect equity grants. Unfortunately, all fixed equity grants are incorrect.

Easier Equity Grants

Dynamic equity models, unlike fixed models, are based on a person’s actual contributions rather than promises of contributions. This is how people normally get paid. We work, we get paid, we work some more, we get paid some more. Giving someone a fixed chunk of equity upfront is like giving them their entire salary on day one. If it sounds ridiculous, it’s because it is ridiculous.

Until recently, dynamic equity models have not been widely used because they have not been widely understood. The Slicing Pie model is a foolproof framework for implementing a dynamic equity model. It has two parts 1) allocation and 2) recovery.

The allocation framework tells you exactly how much equity to give someone based on their actual contributions of time, money, ideas, relationships, supplies, equipment and anything else that has value. People earn “slices” in the pie instead of cash. A slice is a function of the contribution’s fair market value times a risk multiplier. The fair market value is the price that the company would pay if they had the cash. The fair market value of a person’s time, for example, is equal to the salary they would earn if the company could pay them what they are worth. Anything the company pays that is less than fair market is considered “at risk” and, therefore, would be paid in slices.

Everything gets converted to slices and a person’s equity stake is equal to the number of slices they contribute divided by the number of slices contributed by everybody. At any given time, each person will always have an exact, unambiguous slice of the pie.

The recovery framework determines the fair buyout price (if any) when a person leaves the company. The framework takes into account the nature of the separation and imposes consequences when appropriate. For instance, if an employee flakes out on the job and gets fired, he might lose some or all of his slices. On the flip side, if the company fires an employee for no reason he might get to keep his slices or sell them back a premium. Everyone gets treated fairly.

Fairness is Real

When using a traditional fixed split fairness is elusive. Equity becomes a hoarded asset with allocations guided by greed. Using the Slicing Pie model, fairness—total fairness—is real. Equity becomes a tool that reflects the relative contributions of the various participants. Equity agreements are about doing right by each other rather than taking as much as possible for yourself.

You don’t have to guess at equity splits and you don’t have to be paralyzed by them. A fair split is a possibility for all startups. When you see what fair looks like you will never go back.

Mike Moyer is an entrepreneur, and teaches Entrepreneurship at Northwestern University and the University of Chicago Booth School of Business.

]]>http://startuphook.com/employment-2/the-art-of-the-fair-equity-split/1395/feed/3For Stock Options, Employees Are Investorshttp://startuphook.com/employment-2/for-stock-options-employees-are-investors/1371/
http://startuphook.com/employment-2/for-stock-options-employees-are-investors/1371/#commentsWed, 13 May 2015 15:40:22 +0000http://startuphook.com/?p=1371(Article by Sergio Romo) Early startup employees often find it difficult to determine a fair stock compensation for them. Truth is, they are risk-takers just as founders and investors are. They invest their time and resources to contribute to the growth...

Early startup employees often find it difficult to determine a fair stock compensation for them.

Truth is, they are risk-takers just as founders and investors are. They invest their time and resources to contribute to the growth of a startup.

In his post Employee Equity, Sam Altman mentions a crucial fact. One of the biggest problems is that early employees do not have much information about their stock or options.

A good way could be if early employees asked founders some of the same questions investors ask before investing. In other words, they should see themselves a bit more as investors.

Questions early employees should ask:

When did you last raise money and what was the last valuation of the company / cap of the convertible instrument?

The answer to this question is a good parameter for early employees about the current value of their stock or options. It helps to find out how much it was worth months before when the startup raised money and how much is worth today. With this tentative value early employees can analyze numbers in specific scenarios.

What is your burn rate and how much money do you have left?

This is definitely sensitive information. But it’s not right to underpay someone knowing the runway is low to reach a milestone that could change the life of a startup. Especially because the risk of being unemployed soon at least doubles. Many startup founders are not transparent here hoping good technical hires will save the company.

What previous experience do you, as founders or former employees, have in this industry?

More experience means founders are likely to understand their customers and the pain they try to solve. This helps to have an aligned vision and strategy that early employees may feel more confident with.

Have you started companies before?

Some founders have never been exposed to how difficult startups are. This has an impact in the early management of the business and the quality of the leadership. The track record of the founders is therefore important.

There is a big chance that some founders will not be comfortable sharing sensitive information. But eventually founders and early employees are going to become partners. Truth is, early employees are risk-takers just as founders and investors are. They invest their time and resources to contribute to the growth of a startup.

In his post Employee Equity, Sam Altman mentions a crucial fact. One of the biggest problems is that early employees do not have much information about their stock or options.

This is why I think transparency and interest alignment are the safest way to go from the beginning, as in any partnership. As it is with any investor — founder relationships.

]]>http://startuphook.com/employment-2/for-stock-options-employees-are-investors/1371/feed/09 Pieces Of Advice To Drive Your Career Forwardhttp://startuphook.com/employment-2/9-pieces-of-advice-to-drive-your-career-forward/1349/
http://startuphook.com/employment-2/9-pieces-of-advice-to-drive-your-career-forward/1349/#commentsSun, 10 May 2015 14:03:07 +0000http://startuphook.com/?p=1349 (Article By Hassib Nasseri) I invest a lot of time in personal development and growth. I actively seek to learn from the successes and failures of others. With the rise of these social platforms and knowledge sharing economy, it’s so...

I invest a lot of time in personal development and growth. I actively seek to learn from the successes and failures of others. With the rise of these social platforms and knowledge sharing economy, it’s so easy for us to follow and learn from some of the most successful and influential people in the world. Below, I have summarized the 9 best pieces of advice I have come across over the last few years which I strongly feel are key to having a successful career in our modern society.

Develop Your Personal Brand

Tom Peters, a best-selling writer on business management practices, best known for In Search of Excellence, wrote:

Regardless of age, regardless of position, regardless of business we happen to be in, all of us need to understand the importance of branding. We are the CEOs of our own companies: Me Inc. To be successful today, our most important job is to be head marketer of the brand called YOU.

The Internet and social media have democratized marketing on the Internet. The playground has never been better for individuals to bypass the middlemen. New tools and economic forces have emerged to make it possible for many individuals to showcase their talent and passion and make millions, without relying on big record labels, corporations, publishing houses, or governments to pick them.

Start focusing on developing your personal brand around the areas you are passionate about. Think about using these social platforms from a business and commercial point of view, instead of just a channel of communication with your friends and family.

Be Ambitious, it Always Beats Talent

One of the most inspiring lines in cinema history had to be;

“My ambition far exceeds my talents,”

said by Johnny Depp’s character George Chung. Ambition is the most important tool to achieving success, overriding both talent and resources by far.

There are a lot of people that are talented, but aren’t successful, at the same time, there are many people that are very successful, but not as talented or smart. The majority of the people that have attained elite status and rewards were underdogs that had the ambition to prove the world wrong rather than prove it right and simply be a nobody.

Those that are fueled by ambition to work hard and make the sacrifices necessary to have the lives they dreamed of will almost always come out on top. They love the determined, passionate person they are striving to become and the feeling their work gives them, so they find no reason to quit or not believe in themselves.

“Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.” – Thomas Jefferson

Take risks, Learn From Your Failures

You can fail at doing what you don’t want, so you might as well take a chance doing what you love. Jim Carrey

Realising that failure is a key part of success will open so many more opportunities for you.

“I have not failed. I’ve just found 10,000 ways that won’t work.” – Thomas Edison

I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed. – Michael Jordan

I firmly believe that to really succeed in life, you need to have the heart to take risks, stop fearing failure and believe in yourself and your vision.

We learn from risks and those lessons may lead us on an important, new path.

You don’t achieve your dreams by playing it safe.

Embracing risk-taking helps you overcome a fear of failure

“Life is either a daring adventure or nothing at all.” – Unknown

“Only those who play win. Only those who risk win. History favors risk-takers. Forgets the timid. Everything else is commentary.” – Iveta Cherneva

Find a Mentor

I love reading about success stories. I have heard so many successful figures attributing their success to their mentors.

Brad Keywell, Co-founder of Groupon says;

Most fast track professionals I meet, even the most focused and driven ones, literally wasted years in their 20s pursuing something that made no sense. How do you avoid this? Find a mentor”.

Why align yourself with a mentor? A mentor is someone who has the experience or knowledge you seek, and can help in your current role or assist with future opportunities. This is usually someone you respect and who holds a position you aspire to, or is in field you seek to enter.

M – Motivates you to accomplish more than you think you can.E – Expects the best of you.N – Never gives up on you or lets you give up on yourself.T – Tells you the truth, even when it hurts.O – Occasionally kicks your butt.R – Really cares about you and your success.

The ideal mentor is someone who you respect, can connect with on a personal level, and who is willing to impart their knowledge. But don’t expect them to solve all your problems.

Network – Its Not What You Know, Its Who You Know

How many times have we heard that phrase? Successful networking is one of the key components of success. There is no better time than now to strengthen or build your network. A solid network will serve you well for years to come and will be an additional tool in your toolbox especially during these times of economic uncertainty.

Networking is great for sharing ideas and knowledge. Whether it’s asking for feedback or discussing your point of view, it will help you expand your knowledge and allow you to see things from another perspective. It’s natural that networking will result in opportunities. The thing you will not know is when or how they will materialise. Whether it’s a referral, offer partnership or request for your service or product, it is important to be ready to seize opportunities when they come along.

Always Re-invent Yourself – Focus on Personal Development

Personal development is the act or process of understanding and developing oneself in order to achieve one’s fullest potential. Personal development is a vital part in a person’s growth, maturity, success and fulfillment. It is the foundation of mature personality, better relationship, happiness, success and prosperity.

Unfortunately, however, not everyone is aware of the importance of personal development. It wasn’t given much attention at home, work or in school. People give more importance to academic and professional achievement rather than personal growth. This has caused a lot of emotional struggles that many people go through in life because they lack the soft skills which are crucial to one’s success and happiness.

Here are some of the reasons why personal development is important:

It helps you understand yourself better

It assist you in creating your goals and life purpose

It guides you in managing and spending your time effectively

It enhances your ability to handle stress, adversity and change

It supports you in managing your finances more wisely

Money Isn’t Everything, Follow Your Passion

Money is a very powerful thing, it builds empires and breaks down kingdoms, it allows for dreams to come true and it takes others away, it makes some people happy and others completely miserable. Today the pursuit of money is almost directly linked to the pursuit of happiness, many will argue that money = happiness.

Deepak Chopra – New Age Guru

There are many aspects to success; material wealth is only one component. Moreover,success is a journey, not a destination. Material abundance, in all its expressions, happens to be one of those things that makes the journey more enjoyable. But success also includes good health, energy and enthusiasm for life, fulfilling relationships, creative freedom, emotional and psychological stability, a sense of well-being, and peace of mind.

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.Steve Jobs

Too many people spend money they earned to buy things they don’t want, to impress people that they don’t like.” – Will Rogers

Tell Stories, Not Facts

“Stories engage people at every level – not just in their minds but in their emotions, values and imaginations” Unknown

Studies show that we are wired to remember stories much more than data, facts, and figures. However, when data and story are used together, audiences are moved both emotionally and intellectually. Harnessing the power of stories will enable you to be more persuasive, move people to action, and progress into your career.

Shut Up and Listen

Listening is key to all effective communication, without the ability to listen effectively messages are easily misunderstood – communication breaks down and the sender of the message can easily become frustrated or irritated.

Many successful leaders and entrepreneurs credit their success to effective listening skills. Richard Branson frequently quotes listening as one of the main factors behind the success of Virgin. Effective listening is a skill that underpins all positive human relationships, spend some time thinking about and developing your listening skills – they are the building blocks of success.

Thats it, if you made it this far, I want to think you found the advices useful. Share the best piece of advice you have received.

Hassib Nasseri is a startup and social media strategist based in London, UK.